DISCLAIMER: I am not a financial advisor nor certified analyst and definitely not a pro trader. All contents discussed on this blogpost are solely my own personal views and for Trading education/entertainment purposes only. Crypto/Cryptocurrency Trading is extremely risky where losses can exceed deposits. Enter with discretion. Do your own research and due diligence. The basis of this trading analysis is purely technical in nature.
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Good day to all traders once again. Today I want to write a short term trading plan discussing a long opportunity for the LTCUSD pair.
The time-frame that I will be looking at is in the daily chart where I can see clearly that the Litecoin is forming a symmetrical triangle pattern which can also indicate our probable volatile trading ranges.
The top of the triangle is the LTC’s May 2021 new all time high record while the low is obviously the July 2021 dips.
The coin’s daily RSI meter is currently in neutral zone at the time of writing this article and just enough juice to hold its value. But on the safe side of the story, we will anticipate a minor correction based on the crypto leader Bitcoin’s price action which is having an enjoyable bullish mid-month run for October but any moment can turn bearish. Trading cryptocurrencies are extremely risky and we must be akin to play the best risk:reward setup as much as possible.
Unless a clear break above $200 USD shall extend LTC’s breakout towards its September 2021 high and probably re-testing 61.80% retracement level mark at $295-$300 from the said symmetrical triangle trading ranges point of view.
Suppose that the LTCUSD bears grip control over the momentum, we will then keep an eye on the coin’s daily RSI low that happened last September 28, 2021 as confluence with the long trade chance that I am speculating.
Let’s head over to the details of my long trade plan. If 23.60% Fib retracement cannot hold for a strong bearish pressure, then bulls will pull back and try to guard the $150-$160 price regions which I will also be bias for a third double bottom candles formation there connecting the endpoints of the lower supportive trendline of the said symmetrical triangle. That price will be our long entry.
I can see a good profitable exit at the 61.80% retracement. To be precise, it’s the $300. We will observe a close stop loss at the $120 mark which can pave way for a re-test on the July 2021 low.
This LTCUSD long trade plan will have a risk:reward score of 5. A very profitable setup!
Good luck. I hope you have enjoyed my latest cryptocurrency technical analysis.
Have a wonderful weekend ahead all!
